Los Angeles daily herald., 1887-05-02
Difficulties OF National Legisia-
afnrn.


II any one expected to make politics
capital out of his support of the Inter
state Commerce bill, he has found him
self grievously disappointed. Thre
weeks trial has already made 1t an un
popular measure. People object alik
to the enforcement and to the suspension
of it's provisions. In either case som
one is disappointed, and the man who I
hurt feels the evil more than the mai
who is benefited feels the good.
The fault il not so much in this par
ticular measure as in the general at
tempt to regulate the relations between
different shippers by act OF Congress
Even when this may prove necessary IL
the long run, it involves great hardship
for the time being. Matters have ad
.justed themselves to the existing sys
tenn; it takes time aud trouble before
they can be readjusted to any other
The principles applied by railroad man.
ayers in making rates have been by nc
means above criticism; but, such as they
are, the country is used to them.
Business has grown UP un.
der system of special rates.
Contracts between producers and deal.
era have been made on prices such as
these railroad charges would permit.
Capital has been invested where the low
rates could be most readily obtained; it
has been 90 invested in spite of distance
from raw material, high rents or heavy
taxes. The low rates at competing
points do not by any means go into the
pockets Of the shippers alone; they are
forced to divide profits with Others in a
hundred different ways.
Now when the rates for competitive
and non-competitive points ars brought
to the same scale by act of Congress,
what happens? The nominal equality
which is thus produced means a real in
equality. A. has invested his capital in
q city where he has had low railroad
rates, but high taxes, high rents and
high priced raw materials. b. has in
vested his capital where raw materials are
most easily obtained, where taxes and
rents are low but railroad charges high.
The two things balance one another.
But force the railroad to put A. and b.
on the same level, and you leave A.
burdened with his high taxes and rents,
aud no counter balancing advantage to
show for it.
III the discrimination between A and b
has been purely personal one-that is,
ii they have been living in the same
place and have paid different rates for
the same service-there is no hardship
in abolishing it. On the contrary, there
is reason for 80 doing. You simply put
the two on an equality. But If the two
men live in different places, the chances
are that the immediate result is to pro-
duce more inequality than you abolish.
OF course this result will not be perma-
nent. Matters will gradually adjust
to the new order Of things.
Rents will, in the course OF time, be-
reduced at the points which have been
deprived of their special advantages.
nj ercantile business will find new level
of prices. But all this takes time-not
weeks or months, but years; and there
is danger that by the time the process is
well advanced and the worst hardshIps
over some one will insist on modifying
the law in such fashion that we must
begin over again with new process Of
There are three sets Of localities which
have habitualIy been charged less than
the regular tariff rates.
[, Those which have had the benefit
OF water competition. Here the rail-
roads did not create the discrimination,
but have rather tended to lessen it. The
retotive advantage OF Buffalo over I'll.
mira was probably greater before the
Erie railway was built than after.
.. Those like Indianapolis or Allan
IA. which have had the benefit Of rail.
road competition, and have grown up
under its influence.
3. Those which are 80 far distant
from market that without special rates
they cannot ship ut all. This is the
great reason which prevents the applica.
tod of pro rata law to any but small
sections Of the country. Long distance
traffic cannot by any means be made to
pay equal mileage rates. :.
The last OF these classes is exempt
from the operation of the short haul
section. Congress itself was wise enough
to see that equal mileage rates would
stop the movement Of Dakota wheat;
and the law is so worded as not to affect
this traffic very seriously. Its weakness
has proved its salvation, because any
legislation on the subject would so obvi-
ousIy have killed it.
The first class is also practically ex.
enpt, though for totally different
reason. Being able to ship by water,
these places are strong enough to be
in some sense above the law.
n may cause them Inconvenience,
but it cannot prevent them from getting
low rates if they are willing to ship by
water. There is O loss OF traffic to the
railroads, an Inconvenience to every
body, and no corresponding gain to any
body, except, perhaps, the boatmen'
Under these circumstances, the Commits
sion has been urged to exempt such
points altogether from the operation OF
s.s ..aw, and has taken some steps In
that general direction. :.
But these exceptions make it bear all
the more heavily on localities OF the
tecond class, places which are neither
weak enough nor strong enough to
eyade the operation of the law. When
there was no law at all, Indianapolis and
Toledo sould compete ON terms OF sub
stantial equality. When tho law ap'
Piled with equal force to both. water
competition might give Toledo Ger
tain measure OF advantage. But If the
Commission is going to adopt the policy
of exempting places which have the ben
eft of water composition. the relative
hardship for places which do not enjoy
such privileges will be overwhelming.
ANY exception which is granted will
form the ground for demanding 2 dozen
Others. The cases do not stand alone.
The question of business prosperity Is
a question of relative rather than abso-
lutte rates. :,
We ara not defending the old system,
many Of whose effects, direct and indi'
rect, were thoroughly bad. Nor are we
ouarreling with the underlying principle
Of the present law. The hardship is IN
the process Of adjustment; the final re-
suit, II we can ever reach IT, VIII very
likely be beneficial. Any amendment
which Congress ia likely to pass woulo
probably do quite as much harm o.